RioZim announces first profit since dollarisation

Chihota said the group’s associate, Murowa Diamonds (Private) Limited is recovering on the back of a number of initiatives implemented in 2016 which include the rolling out of a new mining plan, doubling the plant’s processing capacity and more investment.

RioZim’s share of the loss in the associate dropped sharply from $2.2 million in the preceding year to $267 000.

ENR remained under care and maintenance due to the unavailability of matte supplies from its sole supplier. The supplier was placed under provisional liquidation during the year, but the group is working on securing alternative matte supplies both locally and regionally.

Owing to depressed chrome prices coupled with high power tariffs, the chrome project remained on hold throughout the year as its feasibility remains uncertain, Chihota added.

Going forward, Chihota said with the commissioning of the Cam & Motor gold processing plant, the company intends to increase operational efficiencies through the optimisation of the plant.

Additionally RioZim intends to increase production and gold recoveries through the installation of a flotation circuit to the plant in the second quarter of 2017.

However Chihota said the prevailing foreign currency shortages  and the inability to process all external payments pose a threat to the procurement of adequate supplies from external suppliers.- The Source

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